• by Laurie Sullivan  @lauriesullivan, Yesterday

Microsoft Advertising looked back at the 2024 holiday season to help brands prepare for 2025, but artificial intelligence (AI) this year will affect global advertising trends and tips even more.  

A significant shift in shopping behavior occurred in 2024, with conversions peaking during the five-day cyber shopping season, but those days accounted for a smaller percentage of total holiday conversions.

Sales extended into January. U.S. advertisers saw 25% more conversions after Christmas, while Australia drove 15% higher conversion rates in January.

Early audience building built success last year for one German retailer. By running video ads from early November to mid-December, S. Oliver linked upper-funnel ads with lower-funnel performance campaigns just as purchase intent peaked. The campaign returned a 27% conversion rate with impression-based remarketing, as well as a 10% lower CMP and a 50x higher clickthrough rate through Microsoft compared with other platforms.

Diversity ad formats across native, video and search can expand reach and impact. Data that Microsoft shared for the European market showed up to 64% more reach among conversions.

Generative artificial intelligence continues to prompt better returns, according to Microsoft. Australia’s advertisers running Microsoft Advertising Performance Max along with Search Ads during the 2024 holiday season led to improved key performance indicators, about 3% higher CVRs and 85 less CPAs.